Chapter 393: Seventy Percent? Won't That Lose Money?
Central Intelligence Agency Director Allen proposed a compromise: "Sir, I suggest adopting a two-pronged strategy. On one hand, fully push forward the satellite program and 'Thor's Hammer' to ensure we do not fall behind in conventional fields; on the other hand, secretly advance 'Project Zero' as a final insurance policy."
The President pondered for a moment and finally nodded: "Agreed. 'Project Zero' will not be launched for now, but all preparations must be made. At the same time, I want you to ensure—the satellite program must succeed!"
"Understood, sir." The group responded in unison.
After the meeting ended, Doctor Cohen was kept behind by the President alone.
"You know," the President's voice was low, carrying a hint of a threat, "this project concerns the fate of the nation, and even more so, your future. If it fails..."
Cohen wiped the sweat from his forehead: "I understand, sir. We will spare no cost to ensure success."
Walking out of the Black Palace, Doctor Cohen looked at the gloomy sky, his heart filled with anxiety.
……
At the same time, in the capital of Long Country, a meeting that was equally tense but more pragmatic was underway.
Inside the National Industrial Committee conference room, Li Mingyuan stood before a massive world map, pointing at shipping routes marked with red lines and red dots scattered across the globe.
"These are our first-phase steel export routes and target markets," he explained, "focusing on developing countries in Asia, Africa, and Latin America, while also accounting for the European reconstruction market."
Department Head Chen of the Ministry of Industry carefully studied the map and the accompanying data tables: "According to this plan, we are to export 2 million tons of steel in the first year, reaching 10 million tons by the third year... Is this target too aggressive?"
"Not aggressive," Li Mingyuan said with confidence, "we have already started the construction of 30 Top-Bottom Combined Blowing Converters, and the first batch will go into production within three months. At the same time, the reparations and low-cost raw materials we obtained from the Star-Spangled Country can ensure our cost advantage."
He turned to another chart: "More importantly, the quality of our steel will exceed international standards. In traditional Open Hearth Steelmaking processes, the sulfur and phosphorus content is usually above 0.05%, while our technology can control it below 0.02%, greatly increasing the strength and corrosion resistance of the steel."
"Better quality, lower price," Department Head Wang of the Ministry of Foreign Trade said thoughtfully, "this is indeed a trump card. But the problem is, the international market has been controlled by the Star-Spangled Country and Europe for many years; will they let us enter so easily?"
Li Mingyuan smiled slightly: "That is why we need an opening statement that will shock the market."
He took a document out of his briefcase and handed it to every leader present: "This is my proposed international steel export price strategy—we will export the first batch of steel at 70% of the international market price, while providing more favorable credit terms and technical support than Europe and America."
"70%?" Almost everyone gasped, "Isn't that losing money?"
Li Mingyuan shook his head: "Quite the opposite. Thanks to our new process, even at 70% of the price, we still have a 25% profit margin. The key is that this price is enough to completely disrupt the international market, forcing competitors to either drastically lower their prices or exit the market."
"This is a price war," the representative from the Ministry of Finance realized, "we use low prices to open the market, establish channels and credibility, and then gradually increase prices and profits."
"Exactly," Li Mingyuan nodded, "but more importantly, through this method, we can quickly establish a global steel trade network, laying the foundation for the export of more products in the future."
Dean He had been listening in silence and finally spoke: "Xiao Li, I understand your strategic considerations, but will such large-scale exports affect domestic construction? After all, we also need a large amount of steel ourselves."
This question hit the nail on the head. Long Country was in a critical period of reconstruction and development, and steel was the foundation of foundations.
Li Mingyuan was confident: "Dean He's concerns are very reasonable. Our export plan has already taken domestic demand into account. According to calculations, even with vigorous industrial development, the annual domestic demand is about 15 million tons. Our production capacity plan is: 9 million tons in the first year, 20 million tons in the second year, and 35 million tons in the third year. After deducting domestic demand, the export volume will increase year by year."
He drew a growth curve on the blackboard: "More importantly, through export earnings, we can import more urgently needed equipment and technology, which in turn will promote domestic industrial development. This is a virtuous cycle."
Minister Zhang had been listening carefully to all sides, and now he spoke: "Chief Engineer Li's plan is very bold and forward-looking. But executing it will face huge challenges, especially the resistance from the international market."
Li Mingyuan nodded in acknowledgment: "Indeed. The Star-Spangled Country and European nations will certainly set up various trade barriers. But this is precisely where we need the cooperation of the Wajiaobu."
He looked at the representative from the Wajiaobu: "We can break through trade barriers through various channels. First, the relationship network of Beijixiong Guo can help us open the Eastern European market; second, emerging countries in Asia, Africa, and Latin America have no reliance on the West and are our best breakthrough points; third, we can enter developed country markets through joint ventures."
Deputy Minister Liu of the Wajiaobu pondered for a moment: "It is indeed feasible. Especially under the current international landscape, many countries are seeking a 'third way,' neither relying on the Star-Spangled Country nor leaning entirely toward Beijixiong Guo. We can seize this opportunity to expand our diplomatic space through economic cooperation."
"In the end, steel is just the beginning," Li Mingyuan emphasized, "our ultimate goal is to establish a complete industrial export system, including mechanical equipment, transportation vehicles, daily necessities, and so on. Steel is just the first key to opening the international market."
Minister Zhang finally made the decision: "It is settled. The steel export plan will be launched immediately, and the Ministry of Foreign Trade and the Wajiaobu will cooperate fully to ensure the first batch is exported within three months."
After the meeting ended, Li Mingyuan did not rest, but instead rushed to the Military Industry Commission to attend the weapon export standardization meeting.
In the conference room of the military industry compound, all kinds of weapon samples were displayed, from pistols and Rifles to anti-tank guns, everything one could expect to find. Military industry experts were checking the performance and quality of these weapons one by one.
"Chief Engineer Li," Wang Lao, the Director of the Military Industry Commission, shook Li Mingyuan's hand, "thanks to your suggestion, these weapons finally have a way out. Otherwise, they could only be sealed away, wasting resources."
Li Mingyuan looked around the venue: "How is the progress on standardization?"
End of Chapter
